Senators hail suspension of oil excise tax hike

Senators hailed the government’s decision to suspend the second round of increase in excise taxes on petroleum products amid soaring prices of crude oil in the world market.

Senator Juan Edgardo Angara, chairman of the Senate ways and means committee, said such move is a “step in the right direction” as lawmakers struggle to find ways to ease the public’s high inflation woes,

Sen. Joseph Victor “JV” Ejercito also welcomed the decision of President Duterte, which he said is proof that ‘this government listens to the people.’

Opposition Senator Paolo Aquino IV also thanked President Duterte and the country’s economic managers for taking action the appeal of the Filipino people.

“We commend President Rodrigo Duterte and his economic managers for staying sensitive to the plight of our people and adjusting with the times. This is the right decision given the high price of oil worldwide,” Angara said in a statement.

Department of Budget and Management (DBM) Secretary Benjamin Diokno on Wednesday announced that the President has approved the recommendation to suspend the increase in oil excise tax next year.

Last month, members of the Senate majority bloc wrote a letter to President Duterte asking for his support for the suspension of any further increase in oil excise tax.

Angara pointed out that Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law, provides for a safeguard mechanism wherein the scheduled increase in excise taxes on petroleum products shall be suspended when the average Dubai crude oil price for three months prior to the next increase reaches or exceeds US$80 per barrel.

In the first week of October, Dubai crude oil prices have breached the threshold, reaching US$84.41 per barrel.